It's "The Day the Earth Stood Still" for the vast majority of shooters. I don't care if you're a commercial shooter, a photojournalist, a fashion, beauty, or glamour snapper, even most wedding and family & event photographers. The party's over. Paparazzi might be the only group left where someone can wield a camera and make a living. (But I could be wrong as I don't know much about the economics of that group.)
I shoot lots of glamour but I only get to do that because I'm also shooting lots of hardcore for the same companies who hire me. (e.g., Vivid, Hustler, Playboy, Tera Patrick's company, TeraVision, and more.) My income has taken a nose dive in the last year or so. Where once I was working regularly and making pretty good dough, i.e., "making a living," I'm now seeing less than half the work I had just a year ago and way less than half when I think about how much work I had 2 or 3 years ago. There was a time I made stupid money shooting pretty naked girls. Like I said. The party's over.
When it comes to glamour, it's not so much the economy that has mortally wounded the golden goose, it's been technology and the swelling ranks of people willing to give their work away for free or near free. I guess that also holds true for other genres of photography as well. Need photos for your wedding? No problem. Your Uncle Ernie just bought a new digital SLR and he's now a photographer and, best of all, he'll shoot your wedding gratis as a wedding gift. Magazines go to micro-stock sites and buy images for next to nothing. Worse, they go to Flickr and D/L images for free. Often, with the blessing of the shooter! Why? The shooter's ego, of course. "Hey! I got a tear in the XYZ rag!!!" (Whoop-dee-freakin-doo.)